Olam Agri, Husk Power collaborate to advance sustainable energy in Nigeria’s agricultural sector

Olam Agri and Husk Power have announced a groundbreaking commercial and industrial (C&I) solar project in Nigeria’s rice-producing region.

The initiative aims to accelerate the transition of agriculture to sustainable energy infrastructure, significantly reducing reliance on expensive and polluting diesel generation.

Tribune Online reports that, under the partnership, Husk will deploy a 1.3 MWp solar photovoltaic (PV) system, integrated with an 860 kWh battery energy storage system (BESS), at Olam Agri’s rice operations in Rukubi, Nasarawa State.

The shift to solar power not only represents a significant step in Olam Agri’s efforts to cut diesel consumption but also marks progress towards a more sustainable and cleaner energy future, as Husk will supply power to Olam Agri under a 10-year power purchase agreement (PPA).

The solar-battery hybrid system will enhance voltage stability, ensuring a reliable power supply while delivering fuel cost savings and substantially reducing carbon emissions.

This latest initiative builds on Olam Agri’s broader commitment to integrating sustainable energy solutions across its operations in Nigeria and beyond. In 2024, the Olam Agri rice farm introduced a solar farm to power its mill operations, marking a milestone in its journey towards clean energy.

Over the past two years, Olam Agri has further expanded its renewable energy efforts. Beyond solar, it is implementing additional energy-saving initiatives, including improving energy efficiency across its factories, adopting cleaner-burning fuels, and optimising production processes to minimise waste and emissions.

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These efforts align with Nigeria’s renewable energy goals and contribute to the global push for sustainable agricultural and food production.

Speaking on behalf of Olam Agri in Nigeria, Country Head Anil Nair emphasised the company’s unwavering commitment to sustainability.

He said, “Sustainability is at the heart of Olam Agri’s operations and this partnership with Husk Power is a significant step towards reducing our carbon footprint while ensuring a stable and cost-effective energy supply. By transitioning to solar power, we are improving the efficiency of our rice production in Rukubi and contributing to Nigeria’s broader renewable energy goals.

“By implementing renewable energy solutions in Nigeria, Olam Agri is not just meeting its own needs but inspiring others to follow suit and help drive sustainability in the agricultural sector across Africa and beyond.”

Nigeria’s government policies and regulations further support the partnership. These policies encourage private-sector investment in renewable energy and promote solar adoption in industrial and agricultural sectors. They are crucial in enabling companies like Olam Agri to integrate clean energy solutions at scale.

Husk’s Country Director, Olu Aruike, highlighted Husk’s leadership in the sector.

“Besides being the market leader in Nigeria’s community solar mini-grid industry, Husk is committed to partnering with commercial and industrial (C&I) businesses to decarbonise key sectors of Nigeria’s economy, including agriculture.

“The partnership with Olam Agri aligns with Husk’s broader goal of installing hundreds of MWs of C&I solar capacity in Nigeria and other regions of Sub-Saharan Africa over the next five years,” Aruike stated.

Tribune Online reports that Nigeria’s C&I solar market is rapidly expanding, with over 550 MW of new solar capacity expected to be added between 2025 and 2029. The partnership thus underscores Husk’s mission to provide renewable energy solutions for businesses and industries, helping accelerate Nigeria’s transition from diesel to solar power.

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